How long are most car loans?

I've been looking at car loans, and there are plenty of lengths. How long are most car loans?

Answer
Car loans typically come in 12-month intervals, ranging from 24 months to 84 months. With that said, 24- and 36-month loans are the rarest. As of 2021, 72-month and 84-month loans have become far more popular, eclipsing the 60-month loan as the most popular loan term.
Loans of 72 and 84 months have become more popular because of the balance between low monthly payments and record-low interest rates. Plus, buyers have the flexibility to pay more money toward the principal each month to pay the loan off early while still maintaining that low monthly payment.
However, longer loan lengths also come with some drawbacks, including:
  • More interest paid over the life of the loan
  • Your warranty running out
  • Wanting a new car before paying off your original loan
  • Higher chance of default or repossession
If you can handle these risks, then a 72-month loan is probably just what you need. All you need to do on top of that is make sure you have the right car insurance for your needs. Use the Jerry app to compare quotes from dozens of insurers to get the best rate for your new ride.
Eric Schad
Answered on Nov 02, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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